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(CNN Business) —  

AT&T and Microsoft have announced the next phase of a partnership that’s aimed at advancing development in two of the buzziest areas of tech: 5G and cloud computing.

The companies inked an agreement in July to work together on innovations in 5G and cloud. 5G is next generation network technology that’s expected to change the way people live and work. And the cloud is distributed data storage and computing power that doesn’t rely on traditional on-site data centers. AT&T (T) (CNN’s parent company) also agreed to migrate its data and workflows to the Microsoft (MSFT) Azure cloud, in what was reportedly a more than $2 billion deal for Microsoft (MSFT), according to Reuters.

On Tuesday, Microsoft and AT&T’s business unit announced the pilot launch of their so-called “network edge compute” technology, an early outcome of the partnership. The advancement is expected to help both companies’ enterprise customers take advantage of the benefits of 5G, as AT&T works to roll out 5G across the US by mid-2020.

“We’ve said all year, developers and businesses will be the early 5G adopters, and this puts both at the forefront of this revolution,” AT&T Business Chief Marketing Officer Mo Katibeh said in a statement Tuesday.